Tesla to cut production hours for Model S and X

Tesla Inc said on Wednesday it is reducing production hours for its higher priced electric cars Model S and Model X to improve efficiencies, just days after it decided to increase production of its lower-priced versions of its Model 3s.

Chief Executive Officer Elon Musk had said earlier this month that Tesla will no longer be taking orders for the 75 kWh version of the Model S and X to streamline production.

"As a result of this change and because of improving efficiencies in our production lines, we have reduced Model S and X production hours accordingly," a Tesla spokesperson said in an email.

"These changes, along with continuing improvements, give us the flexibility to increase our production capacity in the future as needed."

Musk had said the need for lower-priced versions of Model 3 will become even greater from July, when the U.S. tax credit again drops in half.

Tesla shares fell 5.1 percent to $283.21.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)